RadNet Inc. Common Stock (RDNT)

FairStock Score: 27/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

RadNet is a capital-intensive outpatient imaging operator with a digital health segment. Revenue has grown from $1.6B in fiscal year 2023, period ended 2023-12-31, to $2.0B in fiscal year 2025, period ended 2025-12-31, and in fiscal Q2 2026, the quarter ended 2026-06-30, RadNet reported $622.7M of revenue and $7.5M of net income, or $0.10 per diluted share. But growth has not translated into durable earnings: fiscal year 2025 produced a net loss of $18.7M and diluted EPS of $-0.25, after a $2.8M profit in fiscal year 2024 and $3.0M in fiscal year 2023. The FairStock Lynch category is TURNAROUND, based on a loss in the latest year after earlier profits, and that fits. The balance sheet gives me pause: debt-to-equity is 1.57, the Altman Z-score is 1.43, and ROCE is only 1.70%. Free cash flow is $72.4M, a 1.3% FCF yield against the $5.6B market cap at the 2026-10-13 close. EV/EBITDA is 21.0, P/B is 5.13, and the trailing P/E is -275.04, so valuation rests on future improvement, not present earnings. There is little evidence here of a wide moat; reimbursement pressure, labor, and capital needs are persistent. The fiscal Q2 2026 return to profit is encouraging, and revenue growth is real, but one quarter does not make a turnaround. I would want several periods of positive net income, lower leverage, and much better returns on capital before calling this a sound value.

In plain English: RadNet runs outpatient medical imaging centers and also sells digital health products. Sales are growing quickly, but profits are thin and the latest full year showed a small loss, while debt is high. At the recent price, the market is paying a lot relative to the profits and cash flow shown, so it does not look cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer